Process Strategies Essay

1393 WordsJul 16, 20126 Pages
Process Strategies Bill Hall In the vast and ever changing world of producing consumer products and services, companies are faced with producing at lower costs using fewer resources and superior materials in an effort to gain market share thus improving profitability. The decision on how to achieve this is far more complex than using a gut feeling as it might have been many years ago. Companies must now analyze their processes and people to determine the most efficient and effective methods to manufacture which should in turn result in an improved bottom line. This is achieved by using one of four Process strategies. Process strategy can be defined as “an organizations approach to transforming resources into goods and services (Jay Heizer, 2011). The four process strategy focuses are Process, Repetitive, Product, and Mass Customization. Keep in mind that it is rare that someone or a company utilizes one process strategy exclusively. Process focus is most commonly used in low-volume, high-variety product production (Jay Heizer, 2011). As can be seen in figure 1.1, there are many inputs into the process which are then manipulated into the final product which could be one of many varieties produced in the same area. Examples of these types of manufacturers are hospitals, print shops, restaurants, and small machine shops. The advantage to being process focused, in essence being very flexible, is that you can cater to a wide variety of requests from your customer base. With little or no changes in your production capabilities or personal you can meet all of their demands. On the other side of the coin we must acknowledge the disadvantages of being process focused. There are typically very high variable costs including highly skilled labor and equipment utilization can be as low as 5% (Jay Heizer, 2011). As you can imagine it would be a bit frustrating to have a
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